Contracts

In NH, a 'land lease' or 'ground lease' arrangement differs from a traditional real estate purchase because:

AThe tenant owns the land but leases the improvements
BThe tenant owns the improvements on the land but leases the land itself from the landowner for a long-term period✓ Correct
CThe government owns the land and leases to private owners
DThe lease automatically converts to ownership after 20 years

Explanation

In a land (ground) lease, the landowner leases the land to a tenant who builds and owns improvements on the site. Long-term ground leases (typically 50–99 years) are used for commercial development. The tenant owns the building; the landowner retains ownership of the land and receives ground rent.

Related New Hampshire Contracts Questions

Practice More New Hampshire Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free New Hampshire Quiz →